Setup in Std Costed Part


(system) #1

When you do std costing you should be using the cost lot size in the part/plant. This size should be whatever size lot that you will do to make a profit. Ex: if you need 1/2 hrs to setup you might need to do 100 units to make it worth while. 



---In vantage@yahoogroups.com, <gracefulthreads@...> wrote:

When we were testing Standard Cost (my CFO wanted to change from current Average to Std), I discovered that the rollup will use the currently approved method to cost the part (even if that part is a purchased part but has a BOM, which we have many of as we will occasionally build parts we usually buy).


You can create a new revision for the part that has whatever you want to change in it, and then just before you do your Standard Cost Rollup change the "approved" revision back to the one without the changes.


I had this all in (I think 3) DMT uploads that took a few hours to run... thankfully we abandoned the Standard Cost project before it went too far.


Ernie Lowell

Diba Industries



---In vantage@yahoogroups.com, <vantage@yahoogroups.com> wrote:

We have a part that has 0.5 hours of setup time. We want to see how setup impacts the overall gross margin of our jobs/orders. However, we don't want that 0.5 hour of setup time factored into the cost of our inventory. For example, when doing a cost rollup for our parts it wants to assume that the cost of making 1 unit of that part includes 1/2 hour of burden and labor now which would increase the cost of my inventory value for that part by 1000%. Any ideas?

(system) #2
We have a part that has 0.5 hours of setup time. We want to see how setup impacts the overall gross margin of our jobs/orders. However, we don't want that 0.5 hour of setup time factored into the cost of our inventory. For example, when doing a cost rollup for our parts it wants to assume that the cost of making 1 unit of that part includes 1/2 hour of burden and labor now which would increase the cost of my inventory value for that part by 1000%. Any ideas?

(system) #3

The resource groups have separate production and setup rates for costing and quoting burden and also for costing and quoting labor. You can zero out the setup rates and it won't inflate the cost. You would need to come up with a system of calculating how the gross margin is affected, most likely a dashboard that totals the setup hours for a period of time. We want to try this in order to have setup time included for scheduling purposes and found zeroing out the setup rates kept the costs the same. We still need to research where the payroll dollars would go. We currently post setup as indirect and have a dashboard that is used to total setup hours by department and post it to the appropriate account.


Sue



---In vantage@yahoogroups.com, <senske3@...> wrote:

We have a part that has 0.5 hours of setup time. We want to see how setup impacts the overall gross margin of our jobs/orders. However, we don't want that 0.5 hour of setup time factored into the cost of our inventory. For example, when doing a cost rollup for our parts it wants to assume that the cost of making 1 unit of that part includes 1/2 hour of burden and labor now which would increase the cost of my inventory value for that part by 1000%. Any ideas?

(system) #4

When we were testing Standard Cost (my CFO wanted to change from current Average to Std), I discovered that the rollup will use the currently approved method to cost the part (even if that part is a purchased part but has a BOM, which we have many of as we will occasionally build parts we usually buy).


You can create a new revision for the part that has whatever you want to change in it, and then just before you do your Standard Cost Rollup change the "approved" revision back to the one without the changes.


I had this all in (I think 3) DMT uploads that took a few hours to run... thankfully we abandoned the Standard Cost project before it went too far.


Ernie Lowell

Diba Industries



---In vantage@yahoogroups.com, <vantage@yahoogroups.com> wrote:

We have a part that has 0.5 hours of setup time. We want to see how setup impacts the overall gross margin of our jobs/orders. However, we don't want that 0.5 hour of setup time factored into the cost of our inventory. For example, when doing a cost rollup for our parts it wants to assume that the cost of making 1 unit of that part includes 1/2 hour of burden and labor now which would increase the cost of my inventory value for that part by 1000%. Any ideas?